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When Driving the Nation's Highways Anna Is Known as Something

question 27

Essay

When driving the nation's highways Anna is known as something of a lead foot. The number of miles per hour over the speed limit varies, but has a mean of 7.5 mph and standard deviation of 2 mph. Unfortunately, the state in which she goes to college adjusts the fines so that the amount of the fine is given by the formula: F = 10(MPH) + 112, where F is the amount of the fine, and MPH is the number of miles over the speed limit. Let random variable F be the amount of her fine if she is randomly stopped for speeding.
a) What is the mean of F?
b) What is the standard deviation of F?


Definitions:

Demand

The willingness and ability of consumers to purchase goods or services at various price levels.

Revenue

The earnings a company garners from its principal operations, often through selling products and services to its clientele.

Supply

The total amount of a particular good or service that is available to consumers at a given price level in a given time period.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price; high elasticity indicates sensitivity to price changes.

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